Crypto ETFs and ETPs: An In-Depth Analysis of Global Trends
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Crypto Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) are becoming increasingly significant in the financial landscape. As of June 2023, these instruments have seen considerable growth in their assets, reflecting an increasing interest among investors.
Overview of Crypto ETFs and ETPs
Crypto ETFs and ETPs are financial instruments that provide investors with exposure to the price movements of cryptocurrencies without the need to directly buy, store, and manage these digital assets. They are listed on various exchanges worldwide, making them accessible to investors globally.
Key Highlights
- Globally listed Crypto ETFs and ETPs had a total asset value of $9.06 billion as of June 2023.
- The total assets in Crypto ETFs and ETPs have grown by 56.3% year-to-date (YTD), from $5.79 billion at the end of 2022 to $9.06 billion.
- Net inflows into Crypto ETFs and ETPs amounted to $425 million in June.
- YTD net inflows stand at $242 million, ranking third highest on record, following YTD net inflows of $4.06 billion in 2021 and $567 million in 2022.
The SEC and Crypto ETFs
The U.S. Securities and Exchange Commission (SEC) has several filings pending for the launch of spot bitcoin ETFs from prominent firms like BlackRock, Fidelity, and Invesco. The response to these filings is eagerly awaited by the market.
Market Performance and Crypto ETFs
The S&P 500 saw an increase of 6.61% in June, marking a YTD increase of 16.89%. Developed markets, excluding the US, rose by 4.46% in June and 11.07% YTD. Emerging markets also saw a rise of 4.33% in June, with a YTD increase of 4.64%.
Such favorable market conditions may have contributed to the growth of assets in Crypto ETFs and ETPs.
Crypto ETFs and ETPs Landscape
There were 166 Crypto ETFs and ETPs listed globally as of June 2023. These funds, provided by 35 providers, were listed on 20 exchanges in 16 countries.
The variety of products has been on a steady rise since the launch of the first Crypto ETF/ETP, the Bitcoin Tracker One-SEK, in 2015. In June alone, four new Digital Asset ETFs/ETPs were launched.
Top Crypto ETFs/ETPs by Net New Assets
The top 20 ETFs/ETPs by net new assets collectively gathered $433.78 million in June. The BTCetc – ETC Group Physical Bitcoin – Acc (BTCE GY) gathered the largest individual net inflow of $121.23 million.
Upcoming Event: 4th Annual ETFGI Global ETFs Insights Summit
The 4th Annual ETFGI Global ETFs Insights Summit will take place in-person in New York City at The Yale Club on October 4th, and virtually on October 5th.
The summit aims to provide traders, portfolio managers, and advisors with insights on how ETFs are being selected, used, and traded by institutional and retail investors.
Registration Details
Registration is free for buy-side institutional investors and financial advisors. All sessions will be recorded, and attendees will receive access to virtual event content on day 2.
Contact Information
For more information, contact Deborah Fuhr at [email protected].
Conclusion
Crypto ETFs and ETPs are an exciting and growing sector of the financial market. Despite the regulatory uncertainties, it’s clear that these financial instruments have a promising future. Investors interested in the crypto market should keep an eye on these trends and consider them in their investment strategies.
Note: All dollar values are in USD unless otherwise noted.
